When it comes to funding options for businesses, asset finance
Business financing simplified
in a nutshell
Asset refinancing allows lenders to reflect on what equity is available in a certain item (equipment, machinery, vehicles, etc.) that is already owned by the borrower and derive a loan to value (LTV) against the said item. Ideally, you would have an unencumbered asset which would allow for a cleaner transaction however you are still able to refinance an asset if there is existing financing on the asset.
For example, if you purchased equipment on a hire purchase agreement and still have an outstanding balance, you can still raise finance against this (partially owned) asset. The new lender will usually pay off your original lender and give you a lump sum based on the equity you have in the asset.